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Iron ore gains on hopes of more stimulus, improved need in China

Iron ore futures costs born down Friday, helped by growing expectations of improved demand and more stimulus to be unveiled in the coming week in leading consumer China.

The most-traded May iron ore contract on China's Dalian Commodity Exchange (DCE) traded 0.79% higher at 894 yuan ($ 124.23) a metric lot, since 0215 GMT.

The benchmark April iron ore on the Singapore Exchange was 0.89% higher at $116.1 a heap.

China's production activity in February contracted for a. fifth straight month, an official factory survey showed, raising. the pressure on policymakers to think about additional stimulus. procedures.

A private-sector survey, however, showed both production and. brand-new orders grew much faster last month, pushing company confidence. to a 10-month high.

Eyes are on China's annual parliament meeting-the National. People's Congress, which will assemble on March 5 with a series. of economic targets and policy priorities for this year.

Without any sign that the sector's (property market) multi-year. correction in real estate is close to discovering a floor, things. will become worse before they get better. We anticipate announcements. of broadening support and clear market interventions, said. analysts at Moody's Analytics in a note, anticipating extra. stimulus for making sector.

Improving market sentiment is also Beijing's latest effort to. support its ailing home area.

China urged above and prefecture-level cities to establish a. funding coordination system before March 15 in a quote to. support the country's struggling residential or commercial property sector.

Other steelmaking active ingredients on the DCE likewise strengthened,. with coking coal and coke up 1.18% and 1.01%,. respectively.

Steel benchmarks on the Shanghai Futures Exchange were. blended. Rebar was little bit changed, hot-rolled coil. ticked up 0.18% while wire rod shed 0.17% and. stainless steel lost 0.18%.

(source: Reuters)